The employment contracts for professional athletes often contain options for either the player or the team. Consider one recent contract in Australian Rules Football. The player's salary was guaranteed for the first couple years. However, after several years, the team had the option to cancel the contract if the player became injured. If we think of each player as a project for the team, this option feature of the contract is best described as:

Question

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The option for the team to cancel the contract if the player becomes injured can be seen as an option to abandon the project (i.e. the player) if it is no longer viable or profitable for the team to continue with it. This aligns with the characteristics of an abandonment option, where the holder has the right but not the obligation to terminate a project or investment when its value decreases below a certain threshold.

The Employment Contracts for Professional Athletes Often Contain Options for Either